You have requested our opinion regarding the interpretation of
House Bill No. 1208, passed by the Sixty-seventh Legislature and
codified as article 2529b-1, V.T.C.S. You first ask:

May securities pledged to secure public deposits pursuant to
House Bill No. 1208 be pledged to the full extent of market
value?

Section 2 of article 2529b-1 clearly states, in pertinent part:

Investment securities or any ownership or beneficial interest
[t]herein shall be eligible and lawful security for all deposits
of public funds of the State of Texas and any public agency to
the extent of the market value thereof. (Emphasis added).

Prior to the enactment of this bill, our laws had differing
valuation rules for various types of depositories. One obvious
intent of article 2529b-1 was to remove those differences by
stating a uniform rule. Texas courts have long recognized a
fundamental rule of statutory construction, set out in Mingus v.
Kadane, 125 S.W.2d 630, 631 (Tex. Civ. App.--Fort Worth 1939,
writ dism'd judgmt. cor.), wherein the court cites volume 59,
page 910 of Corpus Juris, stating:

Where two legislative acts are repugnant to, or in conflict
with, each other, the one last passed, being the latest
expression of the legislative will, will, although it contains no
repealing clause, govern, control, or prevail, so as to supercede
and impliedly repeal the earlier act to the extent of the
repugnancy.

Article 2529, V.T.C.S., most recently amended in 1967, see Acts
1967, 60th Leg., ch. 738, at 1991, enumerates the securities that
a bank may pledge as security for state funds in order to qualify
as a state depository. This statute then provides as follows:

All of such securities may be accepted by the [State
Depository] Board, provided the aggregate amount thereof is not
less than twenty per cent (20%) greater than the total amount of
state funds that they secure; provided that the amount of all
bonds and other obligations offered as collateral shall be
determined by the Board on the basis of either their par or
market value, whichever is less.

Article 2529b-1 was enacted in 1981. This statute does not have
a repealer clause, but section 3 provides as follows:

The provisions of this Act shall be cumulative of all other
existing laws, but shall be full and complete authority for
investment securities to be eligible to secure public funds
without reference to any other law. (Emphasis added).

Article 2529b-1 does not repeal in toto any prior statutes
relating to security for public deposits. However, considering
the general rule followed in Mingus, it is clear that any prior
conflicting statutory provisions regarding valuation of pledge
securities were repealed by the enactment of this statute. It
provides that '[i]nvestment securities . . . shall be eligible
and lawful security for all deposits of public funds . . . to the
extent of the market value thereof.' s2. 'Investment
securities' include government securities and obligations issued
by a public agency. The terms 'government securities' and 'public
agency' are defined in section 1 of article 2529b-1.

Consequently, the securities included within the definitions of
'[i]nvestment securities' in the later enacted statute are lawful
security for the deposit of public funds 'to the extent of . . .
market value.' Securities, if any, that are not included within
the definition of '[i]nvestment securities' in article 2529b-1
and that are specifically listed in article 2529 are to be valued
at 'either their par or market value, whichever is less.'

The Sixty-seventh Legislature also passed another statute with
similar provisions. House Bill No. 2050, entitled the Bond
Procedures Act of 1981 and codified as article 717k-6, V.T.C.S.,
was passed and became effective only days after House Bill No.
1208. House Bill No. 2050 has broader definitions of issuers of
public securities and those securities eligible to pledge against
deposits of public funds than House Bill No. 1208, but has the
same valuation rule wherein it states:

Said bonds also are eligible to secure deposits of any public
funds of the state or any political subdivision or public agency
of the state, and are lawful and sufficient security for the
deposits to the extent of their market value, when accompanied by
any unmatured coupons attached to the bonds. (Emphasis added).

V.T.C.S. art. 717k-6, s 9. Thus, House Bill No. 2050 reiterates
the legislature's will that 'market value' be the rule for
valuation of eligible securities pledged to secure public
deposits.

Even though article 2529b-1 now directs the State Depository
Board to value pledged securities 'to the extent of the market
value thereof,' the board retains the power 'to reject any and
all collateral or surety bonds tendered by a state depository,
without assigning any reason therefor,' and its action in doing
so is final and not subject to review. V.T.C.S. art 2529.
Moreover, any securities pledged by a depository are subject to
the following provision of article 2529, V.T.C.S.:

In the event the market value of the securities pledged by
any depository shall decrease to the point where the collateral
value of said securities, as fixed by the Board, is less than the
amount of said funds on deposit in said depository, the Board
shall require additional security in order to equalize such
depreciation.

Your second question relates to the form of such securities.
You specifically have asked:

Are bonds, fully registered, registered as to principal only
and bonds registered as to interest only eligible to secure
deposits under House Bill No. 1208?

The term 'fully registrable' means, with reference to public
securities, that both the principal and interest of such
securities are payable only to the registered owner thereof.
V.T.C.S. art. 715b, s2(2). Public securities may be issued in a
form that makes them either unregistrable, fully registrable or
registrable as to principal only. Id. s3. See also V.T.C.S.
art. 717k-6, s 4.

House Bill No. 1208 contains no limitations on the form of the
investment securities eligible to secure public deposits. House
Bill No. 2050 provides:

Sec. 4. The governing governing body of any issuer is
authorized to issue bonds and the interest coupons appertaining
thereto, if any, in such form or forms, with provision for
registering such bonds as to principal or as to principal and
interest, or with provision for changing the form or forms of
such bonds and interest coupons, if any, in such manner as shall
be specified by the governing body of the issuer in the
resolution, order, ordinance, or other proceedings authorizing
the bonds.

Sec. 5. The governing body of any issuer is authorized to
issue bonds constituting a series of any number of bonds, or a
single bond, payable in one stated amount or in stated
installments to the bearer, or to a registered or a named payee,
or to the order of, or to the successors or assigns of, such
registered or named payee, and provision may be made for the
conversion of any bond or interest coupon, upon request or demand
of the bearer . . . registrable as to principal or as to
principal and interest, or into fully registered bonds without
interest coupons, or into any other form. . . . (Emphasis
added).

V.T.C.S. art. 717k-6, ss 4, 5. Thus, House Bill No. 2050 is
virtually limitless as to the form of the eligible securities.
Such securities are eligible to be pledged in bearer form with
coupons attached registered as to principal or as to principal
and interest, or into fully registered bonds without interest
coupons, or in any other form authorized by the governing body of
the issuer.

SUMMARY

Securities pledged to secure public deposits pursuant to
article 2529b-1 may be pledged to the full extent of their market
value. They are eligible to be pledged in bearer form with
coupons attached, registered as to principal or as to principal
and interest, or into fully registered bonds without interest
coupons, or in any other form authorized by the governing body of
the issuer.